Urban office markets across South Florida recorded significant negative absorption in the second quarter, although rental rates so far remain unaffected. In the long run, market observers find reasons for optimism in undiminished demand for Class A space, including a tendency of new high-end properties to lease up relatively quickly despite a general falling off in leasing activity.
Fundamentals remained strong in South Florida’s key office markets as 2017 drew to a close, with vacancies continuing to trend downwards and average rental rates climbing. While the entire market can expect continued growth throughout 2018, it is the suburban office markets that are really picking up steam.
JLL’s Q4 2017 Office Insight report offers an overview of the key trends driving the Miami-Dade, Broward and Palm Beach office markets.
Broward county, typically known for its beaches and shopping, is making a new name for itself as a business hub as more and more companies are entering the Downtown Fort Lauderdale market. According to JLL’s Q3 2016 Office Insight, Fort Lauderdale’s Class A assets are thriving in a tight market. Direct vacancy in Broward has declined 80 basis points quarter over quarter to 11.9%, making the third quarter the strongest for vacancy declines over the… Read More